SB707 • 2025

Expands the exemption for receipts from the sale of prescription drugs from commercial activity subject to the corporate activity tax to include critical access pharmacies.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Senator Meek, Senator Bonham,, McLane,, Nash,, Smith DB,, Representative Diehl,, Elmer,, Gomberg,, Mannix,, Nguyen D,, Osborne,, Scharf,, Wright,
Last action: 2025-06-27
Official status: In Senate Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Expands the exemption for receipts from the sale of prescription drugs from commercial activity subject to the corporate activity tax to include critical access pharmacies.

Digest: The Act makes certain rural pharmacy drug sale receipts not taxed by the CAT.

What This Bill Does

Digest: The Act makes certain rural pharmacy drug sale receipts not taxed by the CAT.
(Flesch Readability Score: 77.8).
Expands the exemption for receipts from the sale of prescription drugs from commercial activity subject to the corporate activity tax to include critical access pharmacies.
Applies to tax years beginning on or after January 1, 2026.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-06-27 Senate
In committee upon adjournment.
2025-03-05 Senate
Public Hearing held.
2025-01-17 Senate
Referred to Finance and Revenue.
2025-01-13 Senate
Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: The Act makes certain rural pharmacy drug sale receipts not taxed by the CAT. (Flesch Readability Score: 77.8).
Expands the exemption for receipts from the sale of prescription drugs from commercial activity subject to the corporate activity tax to include critical access pharmacies. Applies to tax years beginning on or after January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to exemption of prescription drug sales; prescribing an effective date.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 707
Sponsored by Senator MEEK; Senator MCLANE, Representatives DIEHL, ELMER, GOMBERG, MANNIX,
NGUYEN D, OSBORNE, SCHARF, WRIGHT (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes certain rural pharmacy drug sale receipts not taxed by the CAT. (Flesch
Readability Score: 77.8).
Expands the exemption for receipts from the sale of prescription drugs from commercial activity
subject to the corporate activity tax to include critical access pharmacies. Applies to tax years
beginning on or after January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to exemption of prescription drug sales; creating new provisions; amending ORS 317A.123;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 317A.123 is amended to read:
317A.123. (1) As used in this section:
(a) “Eligible pharmacy” means a pharmacy that has nine or fewer locations under common
ownership in this state or a critical access pharmacy, as defined by the Oregon Health Au-
thority by rule for purposes related to the Oregon Prescription Drug Program . “Eligible
pharmacy” does not include a pharmacy that caters primarily to veterinary customers.
(b) “Pharmacy” has the meaning given that term in ORS 689.005.
(2) Notwithstanding ORS 317A.100, amounts received by an eligible pharmacy in receipt for the
sale of prescription drugs are excluded from the definition of commercial activity and are exempt
from the tax imposed under ORS 317A.116.
SECTION 2.
The amendments to ORS 317A.123 by section 1 of this 2025 Act apply to tax
years beginning on or after January 1, 2026.
SECTION 3. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1167